What kinds of private equity funds are there in the stock market? For many people, perhaps this private equity fund in the stock market needs more attention, so Bian Xiao specially brings the difference between private equity and Public Offering of Fund, hoping to help you.

What's the difference between private placement and Public Offering of Fund?

Private equity fund:

Issuance method: Private equity funds are issued to specific and limited qualified investors, such as institutional investors and high-net-worth individuals. The issuance of private equity funds is not restricted by the open market, and investors need to negotiate and buy privately.

Investor size: Only a few specific qualified investors can buy private equity funds, usually the investors are small.

Regulatory requirements: the supervision of private equity funds is relatively loose, the entry threshold for investors is relatively high, and the investment direction is relatively independent. Investors need to bear more risks and responsibilities themselves.

Public offering fund:

Issuance method: Public Offering of Fund can publicly issue to any investor, including individual investors and institutional investors. Investors can buy Public Offering of Fund through stock exchanges, official websites of fund companies and banks.

Size of investors: There is no limit to the size of investors who raise funds publicly, and ordinary investors can buy them.

Regulatory requirements: Public Offering of Fund's regulation is relatively strict, and fund companies need to comply with the regulatory requirements of the CSRC and disclose certain information. Public Offering of Fund has a high investment protection and supervision mechanism for investors.

Which fund type is safer?

Which type of fund is safer depends on the specific fund products and investment strategies. Both private equity funds and Public Offering of Fund have certain risks, and there is no absolute security. Investors should choose the appropriate fund type according to their risk preference, investment objectives and investment period. At the same time, comprehensive evaluation should be made according to the financial status, risk level, management team and historical performance of the fund. In addition, diversifying investment and appropriately diversifying risks is also a way to improve investment security. If investors are uncertain about fund selection and investment strategy, they can consult professional financial advisors or financial institutions.

What private equity funds are there in the stock market?

1. Private equity fund: Private equity fund is a securities investment fund that is supervised by the competent department of our government and publicly issues beneficiary certificates to unspecified investors. They refer to funds set up by raising funds from a few institutional investors and wealthy individual investors in a private way, and their sales and redemption are carried out by fund managers through private consultations with investors. In this sense, private equity investment funds can also be called funds raised from specific targets.

2. Private equity fund: Private equity fund refers to the investment in equity assets that cannot be traded freely in the stock market. The investment contents of this investment mainly include non-listed company's equity or listed company's non-publicly traded equity, and the forms mainly include leveraged buyout, venture capital, growth capital, angel investment and mezzanine financing.

Private equity funds do not pursue equity gains, but sell equity through equity transfer paths such as listing, management buyouts and mergers and acquisitions.

3.VentureCapitalFund: Venture Capital Fund refers to a fund operated by a group of people with professional knowledge and experience in science, technology or finance, which specializes in investing in companies with development potential and rapid growth. Venture capital is an investment activity that supports new ventures and provides equity capital for unlisted enterprises, but does not aim at operating products. Venture capital is a high-risk and high-yield industry that mainly engages in capital management in the form of private equity, and pursues long-term capital appreciation by cultivating and coaching enterprises to start or re-start.

On the Importance and Advantages of Private Equity Investment

Customized service

Private equity can provide clients with tailor-made investment plans and services according to investors' needs and goals. Investors only need to communicate their needs to private fund managers and participate in the decision-making of asset allocation, so they can get investment plans that are more in line with their needs.

risk control

When selecting stocks, private fund managers will conduct comprehensive research and tracking, have relatively independent and in-depth judgment and understanding of market trends, and control risks more flexibly and quickly. At the same time, private equity funds can also adopt different risk control strategies, such as strategic hedging and portfolio diversification, to reduce investment risks.

What is the definition of stock?

Stock is a part of the ownership of a joint-stock company and a certificate of ownership issued by a joint-stock company. It is a kind of securities issued by a joint-stock company to all kinds of shareholders, as a shareholding certificate to obtain dividends and bonuses. Stocks are long-term credit instruments in the capital market and can be transferred and traded. With it, shareholders can share the company's profits, but also bear the risks brought by the company's business mistakes. Each share represents the shareholder's ownership of the basic unit of the enterprise. Every listed company will issue shares.